25 March Update

With the large sell-off, I got stopped out of my DD trade.  Yes, I took a loss, but it was negligible for two reasons:  1. My position was small.  2.  I mitigated my risk by getting into the trade near support and thus use a tight stop.  DD continued to plummet past my stop, with my account in tact.  As pointed out yesterday, I am already eying a re-entry for DD assuming that the overall market’s bullish uptrend continues and DD joins in.

Speaking of which, there are a number of stocks that are so very tempting to short.  I say tempting because the overall market’s uptrend is still in tact.  I may take a gamble on a short of a stock that is already in a down trend, such as $UPS.

Other stocks that are temping to short in the near term:  $BAC, $COF, $IP, $JNJ, $JPM.

Again, I would strong encourage anyone to understand the risks of taking a short trade in this current market environment.

That’s all for today.  I don’t expect to post again until the weekend.  Have a great rest of the week and happy trading!

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Potential Return

Hello everyone,

It’s been a long time since I’ve posted.  After the mounting frustration of loss after loss, I decided it was time to take a break from trading.  After some time, I slowly started to get back into looking at the market and analyzing a few stocks here and there.  I also took a step back and analyzed my trades and realized I was making some very fundamental mistakes  (i.e. trading against the trend, holding losing trades, trading on a whim, not letting winners run, etc).  While reacquainting myself with the market, I also took time to review old technical analysis course material.  I resumed trading in October, just taking on a couple of trades per week.  I wasn’t coming out in the green, but I also wasn’t losing either.  It was extremely encouraging to me that my account was holding steady.  After the new year, I decided I wanted to get back into trading more frequently, and I am happy to say that since that time, my account has been a positive 2%.  This may not seem like much, but just being in the green over a period of almost 4 months while trading almost daily has been such a great and exciting experience.  I am keeping my losses small and letting my winners run as best I can.  I fully believe that I have improved and taking a step back may have been just what I needed to push forward and become a better trader.

As far as this blog goes, I am not sure how often I will update it.  Probably not daily, at least, not at first, but I certainly want to update at least once per week.  So here is what I’m looking at for Monday’s trading session:

$DD

Dupont has been in a strong uptrend since October of 2014.  There is an ascending trend line that the stock has bounced off three times since the uptrend.  It is now sitting on that trend line for a 4th time.  I see this as an excellent R/R trade.  Approximately 60 cent risk for a potential $10 gain or more. As long as it’s not up more than a dollar at open, I plan on buying a few calls.

DD

$EXPE

Expedia just broke out to an all-time high.  I see this as another good R/R trade.  The risk is ~$1.  Reward is ~$4.  First target is $100.

EXPE

Some other stocks I’m watching: $COF, $AXP, $MA, $AAPL.

As far as $AAPL goes, I am expecting it to go lower, but if it holds at this level, I plan to buy around $130.  Otherwise, I’ll be looking for a bullish entry around $122.

Thanks for reading and happy trading!